Key Points
- Deloitte Access Economics Business Outlook suggests the economy will grow by just 0.9 per cent in the 2023-24 financial year
- HR expert Arj Bagga says companies are updating the definition of underperformance
- Associate Professor Mohan Thite suggests employees do a SWOT analysis
Arj Bagga, vice president of HR advisory at global consultancy Gartner, said companies are updating the definition for underperformance and planning for austerity measures in case of a recession.
Mr Bagga, however, believes motivated employees who are willing to re-skill may not worry much about the changing economic situation.
The latest Deloitte Access Economics Business Outlook revealed that the Australian economy has softened further and is likely to grow by 0.9 per cent in the 2023-24 financial year.
"The outlook is much worse when removing the effect of population growth. We expect a deep per capita recession over the next two years," report lead author Stephen Smith said.
Arj Bagga is vice president of HR advisory at Global consultancy Gartner. Credit: Supplied by Arj Bagga
I think the stigma around underperformance has been that it's very much the individual's or the employee's fault. Our research actually shows that isn't the case.
He suggested employees hold transparent talks with their managers about the factors and barriers affecting their performances.
"I would encourage them to hold their managers accountable for the future skill needs of the organisation and build a plan on how they can re-skill themselves to the needs of the company," Mr Bagga told SBS.
He said companies are not preparing a redundancy list but focusing more on improving efficiency and increasing workforce productivity.
Finding critical talent has become scarce and expensive. The difficulty of recruitment is increasingArj Bagga
The labour market is becoming more complex, and companies now view talent as a commodity or source they have to maintain and sustain.Arj Bagga
"Letting go of talent when there's an economic downturn or a digital transformation isn't necessarily the best idea," he added.
Associate Professor Mohan Thite at the Griffith Business School said no company would reveal their redundancy or similar plans in advance.
"I would suggest employees undertake a SWOT (strengths, weaknesses, opportunities, and threats) analysis," Prof Thite said.
"They should look for the threats and opportunities in the external environment and then assess their strengths and weaknesses internally," he added.
